I am saying sell the property for fair market value, not pennies on the dollar. Yes there is gold in the ground. Guess what it takes to get it out? A shit load of money. Guess what banro doesn't have? A shit load of money. Guess what Banro realllllly needs right NOW? A shit load of money.
until Twangiza is putting out 10k oz's per month I am not going to waving pom-poms around cheering. Twangiza just put out over 7k oz's/month this past quarter and management expects that output to grow by almost 50% to 10k...? Prove it.
Namoya had it's production output cut in half
When you go public your chief goal is to increase shareholder value. They are having a hell of a time doing that. I say sell, for fair market value, for what it's worth now.
Yes, I believe gold will rally, at some point. But I've also been saying that for 2 years.
Basing your thesis on "I think gold will be $2,000 therefore Banro is worth $xx right now" is not prudent. Right now gold is $1,300 so Banro is worth $xx and that's what it should be sold for. Yes, Banro will be worth considerably more $$ if gold hits $2,000. You know who doesn't want gold there? Every western central bank, every western mega bank, and basically every organization that runs the world. So, yeah, we have a little bit of headwind in this fight.
I like to always look at things from both sides of the fence. Lesson learned after getting butchered in a few "sure thing" stocks early in life. Banro has plenty of potential, plenty of gold in the ground, and is an attractive M&A play. They are also not run very well, they have a large amount of debt, and due to poor mgmt their second mine is screwed up. Based on their projections for Namoya, that mine won't even be able to cover the interest payment on the bond on an annual basis.
Long story short, they better cross their fingers that gold catches a mean bid and in the meantime find a suitor for a property or the whole company.
